Microsoft to Pay Yahoo more after Five Years into the Search Deal

A new regulatory documents filed by Internet giant Yahoo showed that software giant Microsoft will have to pay around 88 percent to 90 percent revenue share on its search ads that will run under Yahoo.com and other network of websites in the second half of the 10-year deal.

It will be recalled that both companies announced the merger last week after years of failed bids and negotiations. The deal, which would combine Microsoft’s Bing search and Yahoo’s powerful website ads, would allow both giants to compete head on against the dominant Google Inc.

Under the said deal, some 400 employees of the internet company will join Microsoft’s workforce to run the Internet search partnership. While some 150 additional Yahoo employees will be selected by both companies to help in the transition period of the launching of the combined technology.

It will also be recalled that Yahoo’s shares have fallen some 16 percent after a huge disappointment of investors due to the announcement that Microsoft will not give an upfront payment following the sealing of the deal.

Under the terms of agreement, Yahoo’s site will acquire the technology of the Microsoft in its search results and advertising. But the companies will have a separate workforce for their respective sales in display ads.

But in terms of “premium” search ads, Yahoo will remain in control as to what search ads will be sold to major high-coveted brands advertising companies.